The G7 countries to invest Ksh.8.62 trillion in Africa’s private sector
As the leaders of the world’s wealthiest nations (G7 Group) wrapped up their first in-person summit Sunday since the outbreak of the pandemic, they pledged Ksh.8.62 trillion worth of investment in Africa’s private sector to support economic recovery and growth.
It is a post-coronavirus pandemic programme that will see G7’s Development Finance Institutions (DFIs), in partnership with World Bank’s International Finance Corporation (IFC), the African Development Bank (AfDB), European Bank for Reconstruction and Development (EBRD) together with the European Investment Bank invest in Africa for the next five years.
According to a statement from the United Kingdom, the investments will support the long-term development objectives to focus on infrastructure, renewable power, manufacturing, agriculture and technology sectors.
“This investment will create jobs, boost economic growth, help tackle climate change and fight poverty. It comes at a crucial time as the continent rebuilds its economies, severely impacted by Covid-19,” said U.K Minister for Africa, James Duddridge.
According to the International Monetary Fund (IMF), Sub-Saharan Africa needs additional financing of around Ksh.45.82 trillion between now and 2025 to help strengthen the pandemic response spending and reduce poverty in the region.
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Nick O’Donohoe, the Chief Executive Officer Centre for Disease Control (CDC) Group, said African economies urgently need capital to start rebuilding quickly from the impact of the pandemic.
“CDC is committed to building long term investment partnerships in Africa that fuel sustainable private sector growth in support of the UN’s Sustainable Development Goals,” said O’Donohoe.
On his part, Werner Hoyer the President of the European Investment Bank also lauded the G7 leadership for its initiative which will enhance support for high-impact investment across Africa during and after the COVID-19 pandemic.
G7 countries which include the United States, U.K, Canada, France, Germany, Japan and Italy have also pledged to donate one billion COVID-19 vaccines to poorer countries to aid the fight against the pandemic.